Category: Triad

We were just coming out of the ‘91 Gulf War recession and interest rates were floating around 9%. Housing sales were starting to heat back up and prices were gaining. I had a friend who was getting married and they each owned a home – their goal was to sell both houses and build their first home as a married couple. I immediately expressed interest in one of the homes and remember the price was $90,000. That seemed so out of reach to me, but after meeting with a mortgage lender, it appeared my monthly mortgage payment would only be approximately $300 more per month than my current lease agreement – suddenly it seemed like it was in our reach. The real kicker was my CPA’s advice – you need that mortgage interest deduction! After we purchased the house, I determined that my tax burden decreased 25% – yes, my annual taxes had an immediate improvement due to the mortgage interest deductions, which the joy of home ownership provided!

The news is pretty bad this week. A lot of doom and gloom in the national headlines, especially with unemployment rates still in double-digits, and with employers sitting tight with no new hires. There is however, some great news coming out of the Triad Region this week and we can only get excited about where we are headed in the short-term.

The first announcement was a big one – Caterpillar, Inc announced they would bring a significant manufacturing operation to Winston Salem. This represents 392 full-time jobs with an average salary of $36,000 per year plus benefits. This is a $426 million dollar investment that will also create some good construction jobs to build their facility – a 850,000 square foot facility that will be used to build parts for their large mining trucks.

Well, the first half of the year is over. Can you believe how quickly this year is moving, it’s hard to believe that it’s already August?? For real estate in theTriad, the spring season proved to be an incredible few months. The tax credits really worked and as a result, sales in the region abounded.

The million dollar question is where do we go from here? Here are some thoughts on where we are now and where we are going:

Sales for the first half were overall strong. The tax credit shifted our median price down between 8 to 10%, which means that a large number of buyers were purchasing homes at lower price points. For the Triad Region, the median price was $135,000. Now that the tax credit has ended, Demand for Entry Level Houses will remain flat for the 2nd half of the year.

All those folks who sold their homes this spring are looking and we expect Demand for Move-up Homes to remain strong for the next few months. In fact, the numbers locally for May and June prove that as sales in the $250,000 to $750,000 range picked up! So Demand for Upper-End Homes should slowly gain strength.

South Carolina produced major league standouts like Camden’s Larry Doby and Anderson’s Jim Rice. North Carolina brought us Williamston’s Gaylord Perry, Hertford’s Catfish Hunter, and Raleigh’s Josh Hamilton. And while the Carolinas do not have a major league baseball team (yet), minor league teams such as the Durham Bulls, Charlotte Knights, Carolina Mudcats, Burlington Royals, Greensboro Grasshoppers, and Winston-Salem Dash keep the game relevant and thriving.

We know that folks are retiring here. We know for a fact that the population is growing organically. We know the state of North Carolina, through its state university systems and private universities, is attracting bright young talent. We know that young people who go away to school return back here to build a career and start a family. We know that folks seeking a second career are migrating here to retool and regenerate. We know that career professionals who are self employed, and need an international airport, choose us for their landing pad.

There has been a lot of conversation recently about the first time homebuyer’s tax credit and its effects on the market. But what about the upper end of the market, specifically homes priced at $750,000 and above?

To understand the current status, we need to review what impacts buyers and sellers in this part of the market:

Ability to get mortgages

Inventory of homes on the market

Consumer confidence

While the same 3 factors affect all buyers and sellers regardless of price point these trends affect the high-end buyer a little differently. Let’s take a look at how this group specifically has been affected.

I’m often asked how the real estate market is doing in the Triad Region. In fact, one person recently commented that if the real estate market is improving, then everything thing else will too. Housing normally leads the economy and I have to say thelast 60 days have been fun again! The first quarter was a promising start for 2010 real estate sales in the Triad market. March was especially strong and the federal government’s tax credits helped stimulate more April sales.

For those who are trying to sell their home, just remember that selling a home is dependent upon numerous conditions, especially price and maintenance. If your home is priced correctly and is in great condition, it will take approximately 4 months to sell a house in the Triad. The average number of days your home will spend on the market will also slowly decline as the spring market continues to accelerate.

Sitting back and reflecting on the real estate industry, I am amazed at all that we have been through. There is no denying that over the past decade, we have lived through some extreme highs and extreme lows together. That being said, if we take a step back to examine the real estate market since 1950, it is clear that we are continuing to see forward progress. Today, we are adjusting and recalculating from a 5-year hiatus, which is why I felt the need for the Allen Tate Company to create a blog where myself and my Allen Tate team members can share with you information about home ownership. This is a very important topic to us and is one that covers buying and selling homes, mortgages and insurance, relocation and renovation as well as the state of national, regional and local housing markets.

As the sun rises on the residential housing market in America, there is an extra ray of light shining on the place I call home.

The I-40/85/77 corridor has been named among one of the strongest metropolitan areas in the country. In a nutshell, the Carolinas represent a region poised for unparalleled growth and attention. Why is this, you may ask? I attribute it to the economic diversity of our job clusters, climate (who could possibly say no to this weather?!), pro business attitudes, work ethic, quality of life, and cost of living to name just a few.